An official with the U.S. Attorney’s Office for the Western District of Arkansas said Brandon Barber, a former developer in Northwest Arkansas has been arrested in New York Wednesday.

Barber and four other men face bank fraud, real estate fraud and money laundering charges.

**Update**

Officials confirmed the United States Attorney Conner Eldridge, FBI Special Agent Randall Coleman and IRS Special Agent Christopher Henry discussed indictments returned by a Grand Jury in a federal case involving bank fraud, bankruptcy fraud and money laundering during a news conference in Fort Smith Wednesday.

Eldridge said five men have been charged and the investigation has been going on for years.

Barber is the former Northwest Arkansas developer in charge of luxury high-rises like the Belafont and Legacy condos in Fayetteville. Court documents allege Barber over-valued both properties to receive more money in loans from Legacy Bank in Springdale and from Metropolitan National Bank in Little Rock.

Barber's failed projects left him millions in debt. In 2009, he filed for bankruptcy. During bankruptcy hearings, indictments released Wednesday allege Barber transferred money to his attorneys, K. Vaughn Knight and James Van Doren to conceal his true assets from creditors. Van Doren, 37, of New York City and Knight, 46, o Fayetteville both face bank fraud charges as well.

“The indictments allege a scheme to conceal assets involving those two men are accounts controlled by them to have those funds be used by Mr. Barber’s personal benefit and expenses while concealing that from creditors and bankruptcy court," U.S. District Attorney Conner Eldridge said.

The FBI arrested Barber at his home in New York Wednesday morning. The case involves the U.S. Attorney's Office along with the IRS Criminal Unit.

“The IRS take particular interest in cases where someone allegedly uses deceit and fraud to line their pockets with other people’s money," IRS Special Agent Christopher Henry said.

The other two men indicted on bank and wire fraud charges are Jeff Whorton, 45, from Springdale and Brandon Rains, 31, from Fayetteville. Whorton and Rains allegedly conspired to to defraud the First Federal Bank by over-valuing the Executive Plaza property to gain a higher loan. The two are also accused of money laundering.

Barber appeared in a New York court Wednesday. He will appear in an Arkansas court at a later date. Van Doren, Knight, Whorton and Rains have been summoned to appear in court on April 15.

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